Hi Susan,

When an invoice in OrderEntry is posted, quantity is relieved from Inventory for each item. However, the actual cost associated with the items is not determined by posting the invoice, but rather when Day End Processing is performed. This also affects the Item Valution report, as you found in your second question. Until Day End is run, an intermediary cost is assigned to the item, either Most Recent or Standard Cost, based on your item costing method.

If you create a credit note prior to running Day End, you get the warning message that you indicated. If you are satisfied with the intermediary cost (Most Recent or Standard) assigned to the invoice, then you don't have to worry about doing Day End prior to entering the Credit Note. To see what it is, you can add Unit Cost to the items grid when viewing Invoices. It will also appear on the new Credit Note when editing the detail. If you want the 'real' cost, then indeed Day End should be run first.

The Item Valuation report will not display the most up to day item quantities and costs until Day End Processing is performed. This is the reason for the Note on the report. If you require exact cost calculations on the report, they are available only immediately after running Day End and prior to creating any more invoices.